[152 Pages Report] The variable rate technology market was valued at USD 1.31 Billion in 2016. It is projected to grow at a CAGR of 9.65% from 2017, to reach 2.24 Billion by 2022. The objectives of the study are to define, segment, and measure the size of the variable rate technology market with respect to its type, crop type, application method, farm size, offering, and region. The report also aims to provide detailed information about the crucial factors influencing the growth of the market, strategical analysis of micromarkets, opportunities for stakeholders, details of competitive landscape, and profile of the key players with respect to their market share and competencies.

This report includes estimations of the market size in terms of value (USD million). Both, top-down and bottom-up approaches have been used to estimate and validate the size of the global variable rate technology market and of the various dependent submarkets. Key players in the market have been identified through secondary research; some of the sources are press releases, annual reports, financial journals, and paid databases. All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources. The figure below shows the breakdown of profiles of industry experts that participated in the primary discussions.

The variable rate technology market is projected to grow at a CAGR of 9.65% from 2017, to reach a projected value of USD 2.24 Billion by 2022. The most significant factor driving the market is the increasing focus on farm efficiency and productivity. The implementation of variable rate technology (VRT) has the potential to change agriculture, making this traditional activity more efficient and predictable. Increasing global food demand, extended profitability & production, and crop monitoring for yield production benefits are the major factors for the growth of the variable rate technology market.

The global variable rate technology market was dominated by the cereals & grains application segment; the market for VRT in oilseeds and pulses is projected to grow at the highest CAGR. Increase in meat consumption and population growth are driving the demand for oilseeds & pulses (around 80% of the soybean crop is used as a meal for animal feed). The cereals & grains segment comprises crops such as wheat and corn, which are widely cultivated across the world for food and use in animal feed. Wheat is among the most dominant crops grown worldwide and corn is extensively used for animal feed. Thus, the use of VRT is the highest in this segment.

Furthermore, the VRT software segment is projected to grow at the highest rate due to its different functionalities such as data management, data security, crop health monitoring, farm work mapping, and stock management. Hardware systems such as GPS/DGPS receivers, handheld computers, sensors, and yield monitor systems accounted for more than half of the total VRT offering market in 2016, owing to their extensive use in variable rate technology.

In 2016, the seeding VRT accounted for the largest share in the variable rate technology market; the fertilizer VRT market has been projected to grow at the highest CAGR during the forecast period. The cost-effectiveness of seeding and fertilizer VRTs, when compared to other expensive VRTs, is the major factor driving their markets.

North America is estimated to account for the largest share of the variable rate technology market in 2017. Considering this potential, new market players are entering the market. The increase in automation and digitization of agriculture is creating new business models for this market. Asia-Pacific has been projected as the fastest-growing market for variable rate technology, owing to large farmlands and a high population growth rate. In this region, Australia held the largest market share in 2016, whereas the Chinese VRT market is projected to grow at the highest CAGR during the forecast period.

The major challenge in the variable rate technology market is the effective management of data for making productive decisions. Factors such as the requirement of high initial investments for implementation and maintenance of solutions and devices further act as restraints for the market.